Why Alternative Portfolio Solutions?

The APS team specializes in constructing and managing portfolios that allocate capital across the spectrum of alternative assets. APS partners with both internal specialist investment teams and an extensive network of external general partners, offering an array of total return and outcome-oriented solutions to meet the needs of institutional and wealth clients globally.

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Portfolio construction and research
Tailoring asset allocation to meet client objectives, while blending bottom-up insights with top-down relative-value views
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Flexible implementation
Deploying capital across the spectrum of alternative assets, through direct investments, co-investments and funds
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Unconstrained Investments
Leveraging BlackRock’s edge to offer access to a wide-range of specialist teams, proprietary deal flow and external GP relationships
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Proprietary analytics and risk management
Utilizing informed insights and technology for capital planning, risk management, and portfolio monitoring

Key factors influencing a successful alternatives program

Risk allocation of private market assets

Sources: BlackRock, as of 1 January 2025. For illustrative purposes only. BlackRock Investment Institute with data from Morningstar, Thomson Reuters, Pitchbook. 31 December 2022. Notes: The chart shows the distribution of historical returns net of fees for Fixed Income, Equity (Large Cap Equities), and Hedge Funds from 1 January 2007 – 31 December 2022. Fixed Income and Large Cap Equities funds are represented by U.S.-domiciled funds tracked by Morningstar, Hedge Funds by the Thomson Reuters Lipper TASS global universe. Private Equity, Real Estate, Infrastructure (Real Assets) and Private Credit (Private Debt) represented by Pitchbook’s Global Fund Performance Report as of 31 December 2022. Private Equity, Real Estate, Infrastructure (Real Assets) and Private Credit (Private Debt) distribution of historical returns are net of fees from 1 January 2004 -31 December 2022. Chart is for illustrative purposes only and does not represent the actual performance of any BlackRock portfolio. This is not a recommendation to invest in any particular financial product. Indices are unmanaged and one cannot invest directly in an index. Forecasts are not guaranteed and subject to change. The figures relate to past performance. There is no guarantee that any forecasts made will come to pass. CAGR represents compound annual growth rate. Past performance is not indicative of current or future results.

A successful approach should look beyond asset class labels by decomposing underlying economic risk drivers, employee different instruments for effective capital deployment over multiple years, and possess the capabilities to source, select and access optimal allocations for a client’s alternatives portfolio.

Capital deployment of private market assets

Sources: BlackRock, as of 1 January 2025. For illustrative purposes only. BlackRock Investment Institute with data from Morningstar, Thomson Reuters, Pitchbook. 31 December 2022. Notes: The chart shows the distribution of historical returns net of fees for Fixed Income, Equity (Large Cap Equities), and Hedge Funds from 1 January 2007 – 31 December 2022. Fixed Income and Large Cap Equities funds are represented by U.S.-domiciled funds tracked by Morningstar, Hedge Funds by the Thomson Reuters Lipper TASS global universe. Private Equity, Real Estate, Infrastructure (Real Assets) and Private Credit (Private Debt) represented by Pitchbook’s Global Fund Performance Report as of 31 December 2022. Private Equity, Real Estate, Infrastructure (Real Assets) and Private Credit (Private Debt) distribution of historical returns are net of fees from 1 January 2004 -31 December 2022. Chart is for illustrative purposes only and does not represent the actual performance of any BlackRock portfolio. This is not a recommendation to invest in any particular financial product. Indices are unmanaged and one cannot invest directly in an index. Forecasts are not guaranteed and subject to change. The figures relate to past performance. There is no guarantee that any forecasts made will come to pass. CAGR represents compound annual growth rate. Past performance is not indicative of current or future results.

How APS can deliver value for investors

Whether investors are developing a first-time alternatives program, looking to complement existing alts exposures or searching for an efficient way to target specific outcomes (e.g., growth, income, sustainability), our APS solutions offers the capabilities to help clients achieve their unique goals.
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Multi-alternative commingled funds
Scaled solutions addressing common objectives and challenges within specific investor segments
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Whole alternatives portfolio solutions
Fully diversified alternatives program designed and managed in the context of the whole portfolio
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Custom outcome solutions
Customized allocations designed to complement existing alternatives portfolios based on a specific objective
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Portfolio diagnostics and knowledge sharing
Portfolio analysis, cash flow modeling, and alternatives allocation recommendations in a total portfolio context

We combine data-driven insights to implement relative value views across market cycles with the reach and expertise of the world’s largest asset manager.

Vidy Vairavamurthy
Chief Investment Officer, Alternative Portfolio Solutions (APS)

Whole portfolio approach across alternative assets

Asset allocation across alternative assets

Source: BlackRock, as of 1 January 2025. For illustrative purposes only. 

Overlap and risk considerations

Help avoid unintended overlap of underlying risk factors

Dynamic asset allocation

Enables dynamic asset allocation adjustments as markets change

Governance and reporting

Provides cohesive governance and reporting for a seamless experience

Cost efficient

Single touch point to effectively implement and scale an alternatives investment program

Our APS team

Vidy Vairavamurthy
Chief Investment Officer, Alternative Portfolio Solutions

Contact our institutional team to learn more about multi-asset strategies

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